Question 1 (a) GENTING Bhd. has been adopting a dividend policy with 50% dividend payout ratio in the past 10 years. Recently, the share price of GENTING Bhd. has increased by 20% right after the company declared the highest dividend payment in its history. GENTING Bhd. did not increase the dividend payout ratio of 50%, the highest dividend payment was declared due to the highest recorded annual profit contributed mainly by its newly built Las Vegas World Resort. Required: Discuss ONE (1) dividend theory that explains the above case. (5 marks) (b) "Corporate governance can reduce agency costs which in tur leads to improved firm performance. The separation of ownership and control in the open financial system can result in the agency problem between management and shareholders. The separation of control and ownership in corporations has caused agency problems and a series of corporate governance mechanisms have been implemented to mitigate them. The primary objective of corporate governance can play an important role in minimising the agency problem and ensuring that the management's interests are aligned with those of the shareholders. The agency theory implies that the board of directors is elected to manage the potential conflict of interests between management and shareholders." Required: Based on the above statement, discuss the framework of control mechanisms provided by corporate governance that mitigate the agency problems between top management and sharcholders. Your discussions must be related to the following board committees (0) Audit committee; (4 marks) (11) Risk committee; (4 marks) (i) Remuneration committee. (4 marks) (c) "The management of a company has a fiduciary duty to its shareholders which is maximising shareholder wealth. Corporate social responsibility (CSR) directly opposes this as it bears high costs in relation to implementing CSR strategies, particularly for small companies." Required: Discuss the above statement based on the shareholder wealth maximisation concept. (4 marks) (d) Durian Sdn. Bhd, wants to raise RM 1,000,000 to build a factory in Melaka. Recommend ANY TWO (2) sources of finance for Durian Sdn. Bhd. in the capital market. (4 marks) Total: 25 marks)